Local FX Market
US dollar was stable against Bangladeshi taka in the beginning of the week. But then the greenback fell sharply later in the week against Bangladeshi taka due to increased supply in the market.

Money Market:
Bangladesh Bank borrowed BDT 8,605.00 million through the Treasury bill auction held on Sunday, compared with BDT 1,017.00 million in the previous week's bid. The weighted average yields of t-bills of different tenors were almost unchanged from the previous bid.

Call money rate was broadly stable with slight increase at the end of the week. The rate was 4.00-4.50 percent in the beginning of the week, then fell to 3.00-4.50 percent before closing the week at 4.50-5.00 percent.

International FX Market
In the beginning of the week, the dollar rebounded from recent multi-week highs against major currencies on Monday on security concerns. US declaration of High Level threat alert for key financial buildings in New York and Washington gave more impetus to dollar's plunge after US second quarter growth data came in weaker-than-expected on Friday. Swiss franc, the traditional safe-haven in times of geo-political uncertainty, gained against both US dollar and euro. The market is looking forward to US non-farm payroll data due out on Friday for direction on the currency movement ahead of the next FOMC meeting on August 10.

The dollar re-tested a 6-week peak against the euro on Tuesday, boosted by a healthy US manufacturing survey the previous day, and gained against the yen as oil prices rose to a fresh record. A rise in the ISM manufacturing index for July, reported on Monday, suggested a recent soft patch in the US economy may have been a blip and was enough to keep markets focused on a key employment report on Friday. Oil prices rose to a fresh high, with US prices overshooting $44 a barrel after OPEC President Purnomo Yusgiantoro said the producers' cartel had no extra oil to supply the world market and bring prices down.

Later in the week, the dollar held fairly steady within recent ranges as investors remained indifferent to take aggressive position ahead of key US jobs data on Friday that could decided the pace of future Federal Reserve rate hikes. Investors were especially cautious after Wednesday's Institute of Supply Management non-manufacturing survey showed a weak employment reading, even though the report painted a fairly robust picture of the service sector as a whole. In Europe, the Bank of England is expected to raise interest rate by 25 bps, but the European Central Bank is unlikely to shift its stance. Sterling also traded flat but a touch lower against the euro. The sterling had softened a touch after official data showed British manufacturing output unexpectedly fell in June.

- Standard Chartered Bank